📺 Stream EntrepreneurTV for Free 📺

How to Choose the Best Legal Structure for Your Startup A look at the pros and cons you should consider before deciding on a business structure.

By Kara Ohngren Prior

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

When starting a business, your decision on how to structure it is an important one. We examined the pros and cons, and what they mean for various types of startups. Here's what you can expect from the four most-popular business structures.

What's the Best Legal Structure for Your Business

Kara Ohngren is a freelance writer and part-time editor at YoungEntrepreneur. Her work has appeared in publications including Entrepreneur Magazine, The New York Times, MSNBC, The Huffington Post and Business Insider.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

Want to Start a Simple Business That Helps the Planet? After 'One Night's Worth of Research,' He Started an Eco-Friendly Gig And Now Makes $200K a Year

Environmentally-conscious laws are picking up steam across the country. When one went into effect in Zach Cavacas's home state, he saw a lucrative business opportunity. Chances are, a similar law is coming to your state, or is already there.

Leadership

I Signed a Series A Deal Just Days After Giving Birth. Here's How I Embrace Parenthood and Entrepreneurship By Breaking Stigmas

Let's dismantle the stigma and normalize conversations around pregnancy and motherhood in the workplace.

Data & Recovery

Protect Your Business with This $50 Cyber Security Bundle

Featuring nearly 130 hours of content, this e-learning bundle can help you learn valuable IT concepts.

Management

Firing a Long-Term Employee is Hard — But It's Necessary. Here's Why.

If you have an employee who has been with you for years, they are often "rock star" performers. But, there are times when your long-termers can become bad performers over time.

Franchise

The IFA Just Released Guidelines to Combat an Industry-Wide Problem. Here's What it Means For Businesses.

The guidelines, part of the responsible franchising initiative, are aimed at strengthening and expanding the franchise industry and franchising model via increased transparency.